By Gregg Gonzalez, CFP®, CFF®

Women and Retirement: Unique Financial Challenges & Strategies

Retirement planning is an essential part of financial well-being, yet for women, the path to a confident future comes with unique hurdles. Factors like longer life expectancy, the gender wage gap, and caregiving responsibilities can make it more challenging for women to build a robust retirement nest egg. However, with the right strategies, women can take control of their financial future and retire with confidence.

1. Longevity: Planning for a Longer Retirement

On average, women live 5-7 years longer than men. While longevity is a gift, it also means more years of funding retirement expenses, especially healthcare and long-term care costs.

🔹 Strategy: Start Early & Save More

• Maximize contributions to 401(k)s, IRAs, and other retirement accounts as early as possible.
• Consider delaying Social Security to increase monthly benefits—waiting until age 70 instead of claiming at 62 can significantly boost income.
• Look into long-term care insurance to protect assets from high medical expenses later in life.

2. Wage Gaps & Career Interruptions

Women still earn, on average, 82 cents for every dollar men earn, which directly affects their ability to save for retirement. Additionally, career breaks for caregiving often reduce retirement savings, lower Social Security benefits, and limit pension contributions.

🔹 Strategy: Maximize Retirement Contributions & Negotiate

• Taking full advantage of employer-sponsored retirement plans—always contribute at least enough to get the company match.
• If you’re self-employed or working part-time, consider an IRA, SEP IRA, or Solo 401(k) to keep retirement savings on track.
• Negotiate salaries and raises—higher earnings mean higher contributions and future Social Security benefits.

3. Caregiving Responsibilities & Financial Impact

At RetireStrong Financial Advisors, we have found women are more likely to step away from the workforce to care for children, aging parents, or spouses. While fulfilling, this unpaid labor can result in lost wages, missed retirement contributions, and reduced Social Security benefits.

🔹 Strategy: Plan for Gaps & Seek Financial Compensation

• If caregiving impacts work, continue making small retirement contributions—even setting aside $50–$100 per month adds up over time.
• If married, consider spousal IRA contributions to ensure continued savings.
• Look into caregiver compensation programs or employer benefits that support caregiving employees.

4. Investing with Confidence

Women tend to be more conservative investors than men, which can limit long-term growth potential. While avoiding unnecessary risk is wise, being too cautious can lead to lower returns and a smaller retirement fund.

🔹 Strategy: Grow Wealth Through Smart Investing

• Invest in a diversified portfolio that balances risk and return.
• Take advantage of target-date funds, ETFs, and other growth-oriented investments in retirement accounts.
• Working with a financial advisor to build a strategy that aligns with your retirement goals.

5. Social Security & Pension Considerations

Because women often take time off from work or have lower lifetime earnings, they may receive less Social Security and pension benefits than men. However, strategic planning can help maximize these benefits.

🔹 Strategy: Optimize Benefits

• Understand how Social Security benefits are calculated and use tools to project different claiming scenarios.
• If divorced after 10+ years of marriage, you may be eligible for spousal Social Security benefits based on an ex-spouse’s earnings.
• If married, coordinate with your spouse to determine the best claiming strategy for maximizing total household benefits.

Taking Control of Retirement Planning

Women face unique financial challenges, but with strategic planning, smart investing, and proactive saving, they can work toward a confident retirement. The key is to start early, stay informed, and seek financial guidance to build a future that aligns with your dreams.

📌 Are you on track for retirement? Connect with a financial advisor at RetireStrong Financial Advisors today to build a personalized plan!

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. 

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. 

The principal value of a target fund is not guaranteed at any time, including at the target date. The target date is the approximate date when investors plan to start withdrawing their money ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF’s net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. 

ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors.​ 

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.